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Telstra drops wireless broadband prices as customers skyrocket

Telstra drops wireless broadband prices as customers skyrocket

More competition and falling revenue per user leads to aggressive strategy to gain customers, an analyst claims

Telstra has dropped prices, raised data allowances and cut additional usage charges for its five new mobile broadband plans, in line with analyst predictions and stiff competition.

The changes mean any customer downloading over their agreed maximum will be shaped to a slower speed, rather than charged for extra data. Plan pricing ranges from $29.95 for 400MB to $119.95 for 10GB.

Customers that bundle their wireless broadband services with other Telstra services such as a home phone, Foxtel service, post-paid mobile or BigPond ADSL/Cable service will save $10 on each up to $20.

The new plans come after the release of the Australian Communications and Media Authority’s (ACMA) Communication Report 2008-09, which showed mobile broadband subscribers rising by 162 per cent to 2.1 million.

“Many Australians use wireless broadband as an addition to their home broadband service, allowing them the convenience of being connected to both the home and office while out and about or when travelling,” acting Telstra consumer managing director, Glenice Maclellan, said in a statement.

“It is also a popular choice for those living in areas with Next G coverage who may not have access to ADSL or cable broadband.”

IDC program manager for telecommunications, David Cannon, claimed the rising number of companies offering wireless broadband was leading to a price war, despite the increase in customers.

“In the mobile broadband market, the average revenue per user [ARPU] is dropping rapidly,” he said. “We think that it’s a new technology and so will go through the first couple of years of high growth and then start to see a decline of growth. There’ll still be positive growth, but we don’t think it’ll be as high.”

For more information about the plans, visit Telstra's website for the changes .

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Tags TelstraIDCmobile broadbandwireless broadband

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